BIRMINGHAM, Ala., Aug. 1, 2022 /PRNewswire/ — Embody Well being Company (NYSE: EHC), the biggest proprietor and operator of inpatient rehabilitation hospitals in the US, immediately reported its outcomes of operations for the second quarter ended June 30, 2022 and affirmed its 2022 steerage.
“Our second quarter outcomes are additional proof of the robust demand for our inpatient rehabilitation providers,” mentioned President and Chief Government Officer of Embody Well being Mark Tarr. “Second quarter discharge development was 4.9%, on high of 18.7% discharge development within the second quarter of 2021. Whereas we proceed to face near-term staffing challenges, we stay assured within the long-term prospects for our enterprise.”
On July 1, 2022, Embody Well being accomplished the spin off of Enhabit Residence Well being & Hospice (“Enhabit”), which is now an unbiased, publicly traded firm. Enhabit’s second quarter outcomes are required to be on this earnings launch, however no commentary on these outcomes is included herein. Starting with the third quarter of 2022, Enhabit’s historic outcomes shall be reported in Embody Well being’s discontinued operations.
Consolidated outcomes
|
Progress |
|||||||
|
Q2 2022 |
Q2 2021 |
{Dollars} |
% |
||||
|
(In Thousands and thousands, Besides Per Share Knowledge) |
|||||||
|
Web working revenues |
$ 1,330.5 |
$ 1,287.7 |
$ 42.8 |
3.3 % |
|||
|
Revenue from persevering with operations attributable to |
0.49 |
1.13 |
(0.64) |
(56.6) % |
|||
|
Adjusted earnings per share |
0.89 |
1.17 |
(0.28) |
(23.9) % |
|||
|
Money flows offered by working actions |
244.6 |
255.9 |
(11.3) |
(4.4) % |
|||
|
Adjusted EBITDA |
240.2 |
278.9 |
(38.7) |
(13.9) % |
|||
|
Adjusted free money move |
205.7 |
205.6 |
0.1 |
— % |
|||
|
Six Months Ended June 30, |
|||||||
|
2022 |
2021 |
||||||
|
Money flows offered by working actions |
$ 463.5 |
$ 414.4 |
$ 49.1 |
11.8 % |
|||
|
Adjusted free money move |
371.6 |
313.0 |
58.6 |
18.7 % |
|||
See connected supplemental info for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.
Common and administrative bills
|
Q2 2022 |
% of |
Q2 2021 |
% of |
||||
|
(In Thousands and thousands) |
|||||||
|
Common and administrative bills, excluding |
$ 28.6 |
2.1 % |
$ 36.8 |
2.9 % |
|||
Common and administrative bills decreased as a % of consolidated income resulting from improved working leverage, a decline within the mark-to-market worth of the Firm’s nonqualified 401(okay) plan, and decrease incentive compensation in Q2 2022.
Common and administrative bills within the above desk exclude $22.9 million and $4.1 million in prices related to the strategic alternate options overview of the Firm’s residence well being and hospice enterprise for the second quarter of 2022 and the second quarter of 2021, respectively.
Inpatient rehabilitation section outcomes
|
Progress |
|||||||
|
Q2 2022 |
Q2 2021 |
{Dollars} |
% |
||||
|
Web working revenues: |
(In Thousands and thousands) |
||||||
|
Inpatient |
$ 1,037.8 |
$ 976.9 |
$ 60.9 |
6.2 % |
|||
|
Outpatient and different |
24.7 |
24.7 |
— |
— % |
|||
|
Whole section income |
$ 1,062.5 |
$ 1,001.6 |
$ 60.9 |
6.1 % |
|||
|
(Precise Quantities) |
|||||||
|
Discharges |
51,902 |
49,492 |
2,410 |
4.9 % |
|||
|
Identical-store discharge development |
1.6 % |
||||||
|
Web affected person income per discharge |
$ 19,995 |
$ 19,739 |
$ 256 |
1.3 % |
|||
|
Income reserves associated to unhealthy debt as a |
2.2 % |
1.7 % |
50 bps |
||||
|
(In Thousands and thousands) |
|||||||
|
Adjusted EBITDA |
$ 225.0 |
$ 254.0 |
$ (29.0) |
(11.4) % |
|||
- Income – Inpatient income development resulted from elevated volumes and pricing. Whole discharge development for the second quarter of 2022 was 4.9% with same-store development of 1.6%. Income reserves associated to unhealthy debt as a % of income elevated 50 foundation factors, primarily attributable to a shift in payor combine towards non-Medicare payors.
Progress in web affected person income per discharge of 1.3% primarily resulted from a rise in reimbursement charges, partially offset by the resumption of sequestration.
Outpatient and different income was unchanged.
- Adjusted EBITDA – The 11.4% lower in Adjusted EBITDA primarily resulted from elevated utilization and pricing of company staffing and sign-on and shift bonuses.
Residence well being and hospice section outcomes
|
Progress |
|||||||
|
Q2 2022 |
Q2 2021 |
{Dollars} |
% |
||||
|
Web working revenues: |
(In Thousands and thousands) |
||||||
|
Residence well being |
$ 220.2 |
$ 232.3 |
$ (12.1) |
(5.2) % |
|||
|
Hospice |
47.8 |
53.8 |
(6.0) |
(11.2) % |
|||
|
Whole section income |
$ 268.0 |
$ 286.1 |
$ (18.1) |
(6.3) % |
|||
|
Adjusted EBITDA |
$ 43.8 |
$ 61.7 |
$ (17.9) |
(29.0) % |
|||
Please check with Enhabit’s Q2 2022 earnings supplies filed individually immediately.
2022 steerage
The Firm is affirming its steerage for its ongoing inpatient rehabilitation enterprise for full-year 2022.
|
2022 Steering Ranges |
|
|
(In Thousands and thousands, Besides Per Share Knowledge) |
|
|
Web working revenues |
$4,250 to $4,300 |
|
Adjusted EBITDA |
$820 to $840 |
|
Adjusted earnings per share from persevering with |
$2.77 to $2.91 |
For concerns concerning the Firm’s 2022 steerage ranges, see the supplemental info posted on the Firm’s web site at http://investor.encompasshealth.com. See additionally the “Different info” part beneath for an evidence of why the Firm doesn’t present steerage for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.
Earnings convention name and webcast
The Firm will host an investor convention name at 10:00 a.m. Jap Time on Tuesday, August 2, 2022 to debate its outcomes for the second quarter of 2022. For reference in the course of the name, the Firm will publish sure supplemental info at http://investor.encompasshealth.com.
The convention name could also be accessed by dialing 866 342-8591 and giving the cross code EHCQ222. Worldwide callers ought to dial 203 518-9713 and provides the identical cross code. Please name roughly ten minutes earlier than the beginning of the decision to make sure you are related. The convention name can even be webcast reside and shall be accessible for on-line replay at http://investor.encompasshealth.com by clicking on an accessible hyperlink.
About Embody Well being
Embody Well being (NYSE: EHC) is the biggest proprietor and operator of inpatient rehabilitation hospitals in the US. With a nationwide footprint that features 150 hospitals in 35 states and Puerto Rico, the Firm offers high-quality, compassionate rehabilitative take care of sufferers recovering from a significant damage or sickness, utilizing superior expertise and revolutionary therapies to maximise restoration. Embody Well being is ranked as certainly one of Fortune’s 100 Finest Firms to Work For. For extra info, go to encompasshealth.com, or comply with us on our newsroom, Twitter, Instagram and Fb.
Different info
The knowledge on this press launch is summarized and must be learn together with the Firm’s Quarterly Report on Type 10-Q for the quarter ended June 30, 2022 (the “June 2022 Type 10-Q”), when filed, in addition to the Firm’s Present Report on Type 8-Ok filed on August 1, 2022 (the “Q2 Earnings Type 8-Ok”), to which this press launch is connected as Exhibit 99.1. As well as, the Firm will publish supplemental info immediately on its web site at http://investor.encompasshealth.com for reference throughout its August 2, 2022 earnings name.
The monetary knowledge contained within the press launch and supplemental info embrace non-GAAP monetary measures, together with the Firm’s adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free money move. Reconciliations to their most comparable GAAP measure, besides with regard to non-GAAP steerage, are included beneath or within the Q2 Earnings Type 8-Ok. Readers are inspired to overview the “Observe Concerning Presentation of Non-GAAP Monetary Measures” included within the Q2 Earnings Type 8-Ok which offers additional clarification and disclosure concerning the Firm’s use of those non-GAAP monetary measures.
Excluding web working revenues, the Firm doesn’t present steerage on a GAAP foundation as a result of it’s unable to foretell, with cheap certainty, the long run impression of things which can be deemed to be exterior the management of the Firm or in any other case not indicative of its ongoing working efficiency. Such gadgets embrace authorities, class motion, and associated settlements; skilled charges—accounting, tax, and authorized; mark-to-market changes for inventory appreciation rights; features or losses associated to hedging devices; loss on early extinguishment of debt; changes to its earnings tax provision (resembling valuation allowance changes and settlements of earnings tax claims); gadgets associated to company and facility restructurings; and sure different gadgets the Firm believes to be not indicative of its ongoing operations. This stuff can’t be fairly predicted and can rely on a number of components, together with trade and market situations, and could possibly be materials to the Firm’s outcomes computed in accordance with GAAP.
Nonetheless, the next fairly estimable GAAP measures for 2022 could be included in a reconciliation for Adjusted EBITDA if the opposite reconciling GAAP measures could possibly be fairly predicted:
- Curiosity expense and amortization of debt reductions and charges – estimate of $160 million to $170 million
- Amortization of debt-related gadgets – roughly $10 million
The Q2 Earnings Type 8-Ok and, when filed, the June 2022 Type 10-Q may be discovered on the Firm’s web site at http://investor.encompasshealth.com and the SEC’s web site at www.sec.gov.
|
Embody Well being Company and Subsidiaries |
|||||||
|
Condensed Consolidated Statements of Complete Revenue |
|||||||
|
(Unaudited) |
|||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(In Thousands and thousands, Besides Per Share Knowledge) |
|||||||
|
Web working revenues |
$ 1,330.5 |
$ 1,287.7 |
$ 2,664.1 |
$ 2,518.1 |
|||
|
Working bills: |
|||||||
|
Salaries and advantages |
773.8 |
708.2 |
1,549.8 |
1,395.4 |
|||
|
Different working bills |
193.4 |
172.7 |
375.5 |
335.0 |
|||
|
Occupancy prices |
19.3 |
20.2 |
40.2 |
40.4 |
|||
|
Provides |
52.8 |
50.0 |
108.9 |
101.9 |
|||
|
Common and administrative bills |
60.3 |
54.2 |
108.7 |
92.8 |
|||
|
Depreciation and amortization |
68.8 |
63.4 |
135.0 |
125.9 |
|||
|
Whole working bills |
1,168.4 |
1,068.7 |
2,318.1 |
2,091.4 |
|||
|
Loss on early extinguishment of debt |
1.1 |
1.0 |
1.4 |
1.0 |
|||
|
Curiosity expense and amortization of debt reductions and charges |
60.6 |
41.8 |
100.2 |
84.6 |
|||
|
Different expense (earnings) |
6.3 |
(4.6) |
9.9 |
(6.0) |
|||
|
Fairness in web earnings of nonconsolidated associates |
(1.0) |
(1.0) |
(1.9) |
(2.0) |
|||
|
Revenue from persevering with operations earlier than earnings tax expense |
95.1 |
181.8 |
236.4 |
349.1 |
|||
|
Provision for earnings tax expense |
23.8 |
39.5 |
55.0 |
74.0 |
|||
|
Revenue from persevering with operations |
71.3 |
142.3 |
181.4 |
275.1 |
|||
|
Loss from discontinued operations, web of tax |
— |
(0.3) |
— |
(0.3) |
|||
|
Web and complete earnings |
71.3 |
142.0 |
181.4 |
274.8 |
|||
|
Much less: Web and complete earnings attributable to noncontrolling pursuits |
(22.6) |
(28.7) |
(45.2) |
(54.2) |
|||
|
Web and complete earnings attributable to Embody Well being |
$ 48.7 |
$ 113.3 |
$ 136.2 |
$ 220.6 |
|||
|
Weighted common frequent shares excellent: |
|||||||
|
Fundamental |
99.2 |
99.0 |
99.2 |
99.0 |
|||
|
Diluted |
100.3 |
100.2 |
100.2 |
100.2 |
|||
|
Earnings per frequent share: |
|||||||
|
Fundamental earnings per share attributable to Embody Well being frequent shareholders: |
|||||||
|
Persevering with operations |
$ 0.49 |
$ 1.14 |
$ 1.37 |
$ 2.22 |
|||
|
Discontinued operations |
— |
— |
— |
— |
|||
|
Web earnings |
$ 0.49 |
$ 1.14 |
$ 1.37 |
$ 2.22 |
|||
|
Diluted earnings per share attributable to Embody Well being frequent shareholders: |
|||||||
|
Persevering with operations |
$ 0.49 |
$ 1.13 |
$ 1.36 |
$ 2.20 |
|||
|
Discontinued operations |
— |
— |
— |
— |
|||
|
Web earnings |
$ 0.49 |
$ 1.13 |
$ 1.36 |
$ 2.20 |
|||
|
Quantities attributable to Embody Well being frequent shareholders: |
|||||||
|
Revenue from persevering with operations |
$ 48.7 |
$ 113.6 |
$ 136.2 |
$ 220.9 |
|||
|
Loss from discontinued operations, web of tax |
— |
(0.3) |
— |
(0.3) |
|||
|
Web earnings attributable to Embody Well being |
$ 48.7 |
$ 113.3 |
$ 136.2 |
$ 220.6 |
|||
|
Embody Well being Company and Subsidiaries |
|||
|
June 30, 2022 |
December 31, 2021 |
||
|
(In Thousands and thousands) |
|||
|
Belongings |
|||
|
Present property: |
|||
|
Money and money equivalents |
$ 186.5 |
$ 54.8 |
|
|
Restricted money |
70.8 |
65.1 |
|
|
Accounts receivable |
658.7 |
680.3 |
|
|
Different present property |
116.4 |
121.2 |
|
|
Whole present property |
1,032.4 |
921.4 |
|
|
Property and gear, web |
2,730.1 |
2,601.6 |
|
|
Working lease right-of-use property |
238.5 |
242.0 |
|
|
Goodwill |
2,456.5 |
2,427.9 |
|
|
Intangible property, web |
398.4 |
417.5 |
|
|
Different long-term property |
226.3 |
254.5 |
|
|
Whole property |
$ 7,082.2 |
$ 6,864.9 |
|
|
Liabilities and Shareholders’ Fairness |
|||
|
Present liabilities: |
|||
|
Present portion of long-term debt |
$ 49.2 |
$ 42.8 |
|
|
Present working lease liabilities |
36.7 |
38.4 |
|
|
Accounts payable |
138.3 |
137.6 |
|
|
Accrued bills and different present liabilities |
611.2 |
530.0 |
|
|
Whole present liabilities |
835.4 |
748.8 |
|
|
Lengthy-term debt, web of present portion |
3,233.5 |
3,243.9 |
|
|
Lengthy-term working lease liabilities |
211.9 |
213.1 |
|
|
Deferred earnings tax liabilities |
79.8 |
86.7 |
|
|
Different long-term liabilities |
177.0 |
173.2 |
|
|
4,537.6 |
4,465.7 |
||
|
Commitments and contingencies |
|||
|
Redeemable noncontrolling pursuits |
43.3 |
42.2 |
|
|
Shareholders’ fairness: |
|||
|
Embody Well being shareholders’ fairness |
2,003.0 |
1,911.3 |
|
|
Noncontrolling pursuits |
498.3 |
445.7 |
|
|
Whole shareholders’ fairness |
2,501.3 |
2,357.0 |
|
|
Whole liabilities and shareholders’ fairness |
$ 7,082.2 |
$ 6,864.9 |
|
|
Embody Well being Company and Subsidiaries |
|||
|
Six Months Ended June 30, |
|||
|
2022 |
2021 |
||
|
(In Thousands and thousands) |
|||
|
Money flows from working actions: |
|||
|
Web earnings |
$ 181.4 |
$ 274.8 |
|
|
Loss from discontinued operations, web of tax |
— |
0.3 |
|
|
Changes to reconcile web earnings to web money offered by working actions— |
|||
|
Depreciation and amortization |
135.0 |
125.9 |
|
|
Inventory-based compensation |
16.3 |
14.8 |
|
|
Deferred tax expense |
(7.9) |
6.2 |
|
|
Different, web |
22.0 |
4.0 |
|
|
Modifications in property and liabilities, web of acquisitions — |
|||
|
Accounts receivable |
29.8 |
(38.1) |
|
|
Different property |
2.2 |
(17.2) |
|
|
Accounts payable |
3.9 |
6.6 |
|
|
Accrued payroll |
16.1 |
27.4 |
|
|
Different liabilities |
64.7 |
10.3 |
|
|
Web money utilized in working actions of discontinued operations |
— |
(0.6) |
|
|
Whole changes |
282.1 |
139.3 |
|
|
Web money offered by working actions |
463.5 |
414.4 |
|
|
Money flows from investing actions: |
|||
|
Acquisition of companies, web of money acquired |
— |
(97.7) |
|
|
Purchases of property and gear |
(230.0) |
(212.7) |
|
|
Additions to capitalized software program prices |
(4.9) |
(10.0) |
|
|
Different, web |
(11.4) |
(1.2) |
|
|
Web money utilized in investing actions |
(246.3) |
(321.6) |
|
|
Money flows from financing actions: |
|||
|
Principal borrowings on notes |
400.0 |
— |
|
|
Principal funds on debt, together with pre-payments |
(345.2) |
(207.3) |
|
|
Borrowings on revolving credit score facility |
300.0 |
45.0 |
|
|
Funds on revolving credit score facility |
(330.0) |
— |
|
|
Principal funds underneath finance lease obligations |
(11.9) |
(11.8) |
|
|
Debt modification and issuance prices |
(25.0) |
— |
|
|
Taxes paid on behalf of workers for shares withheld |
(7.7) |
(16.4) |
|
|
Contributions from noncontrolling pursuits of consolidated associates |
42.6 |
36.1 |
|
|
Dividends paid on frequent inventory |
(56.3) |
(56.9) |
|
|
Distributions paid to noncontrolling pursuits of consolidated associates |
(46.6) |
(52.7) |
|
|
Different, web |
(0.1) |
0.1 |
|
|
Web money utilized in financing actions |
(80.2) |
(263.9) |
|
|
Enhance (lower) in money, money equivalents, and restricted money |
137.0 |
(171.1) |
|
|
Money, money equivalents. and restricted money at starting of interval |
120.3 |
310.9 |
|
|
Money, money equivalents, and restricted money at finish of interval |
$ 257.3 |
$ 139.8 |
|
|
Embody Well being Company and Subsidiaries |
|||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(In Thousands and thousands, Besides Per Share Knowledge) |
|||||||
|
Adjusted EBITDA |
$ 240.2 |
$ 278.9 |
$ 485.2 |
$ 529.7 |
|||
|
Depreciation and amortization |
(68.8) |
(63.4) |
(135.0) |
(125.9) |
|||
|
Curiosity expense and amortization of debt reductions and charges |
(60.6) |
(41.8) |
(100.2) |
(84.6) |
|||
|
Inventory-based compensation |
(8.8) |
(12.0) |
(16.3) |
(14.8) |
|||
|
Loss on disposal or impairment of property |
(2.3) |
(2.9) |
(2.9) |
(2.8) |
|||
|
99.7 |
158.8 |
230.8 |
301.6 |
||||
|
Gadgets not indicative of ongoing working efficiency: |
|||||||
|
Loss on early extinguishment of debt |
(1.1) |
(1.0) |
(1.4) |
(1.0) |
|||
|
Prices related to the strategic alternate options overview |
(22.9) |
(4.1) |
(32.5) |
(5.0) |
|||
|
Prices related to the Frontier acquisition |
— |
(1.3) |
— |
(1.3) |
|||
|
Change in honest market worth of fairness securities |
(3.2) |
0.7 |
(5.7) |
0.6 |
|||
|
Pre-tax earnings |
72.5 |
153.1 |
191.2 |
294.9 |
|||
|
Revenue tax expense |
(23.8) |
(39.5) |
(55.0) |
(74.0) |
|||
|
Revenue from persevering with operations (1) |
$ 48.7 |
$ 113.6 |
$ 136.2 |
$ 220.9 |
|||
|
Fundamental shares |
99.2 |
99.0 |
99.2 |
99.0 |
|||
|
Diluted shares |
100.3 |
100.2 |
100.2 |
100.2 |
|||
|
Fundamental earnings per share (1) |
$ 0.49 |
$ 1.14 |
$ 1.37 |
$ 2.22 |
|||
|
Diluted earnings per share (1) |
$ 0.49 |
$ 1.13 |
$ 1.36 |
$ 2.20 |
|||
|
(1) Revenue from persevering with operations attributable to Embody Well being |
|||||||
|
Embody Well being Company and Subsidiaries |
|||||||
|
Q2 |
6 Months |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
Earnings per share, as reported |
$ 0.49 |
$ 1.13 |
$ 1.36 |
$ 2.20 |
|||
|
Changes, web of tax: |
|||||||
|
Prices related to the strategic alternate options overview |
0.32 |
0.03 |
0.39 |
0.04 |
|||
|
Prices related to the Frontier acquisition |
— |
0.01 |
— |
0.01 |
|||
|
Revenue tax changes |
0.05 |
— |
0.06 |
(0.03) |
|||
|
Loss on early extinguishment of debt |
0.01 |
0.01 |
0.01 |
0.01 |
|||
|
Change in honest market worth of fairness securities |
0.02 |
— |
0.04 |
— |
|||
|
Adjusted earnings per share* |
$ 0.89 |
$ 1.17 |
$ 1.86 |
$ 2.22 |
|||
|
* Adjusted EPS might not sum resulting from rounding. |
|||||||
|
Embody Well being Company and Subsidiaries |
|||||||||||
|
For the Three Months Ended June 30, 2022 |
|||||||||||
|
Changes |
|||||||||||
|
As Reported |
Loss on Early Extinguishment of Debt |
Revenue Tax Changes |
Prices Related to the Strategic Options Assessment |
Change in Truthful Market Worth of Fairness Securities |
As Adjusted |
||||||
|
(In Thousands and thousands, Besides Per Share Quantities) |
|||||||||||
|
Adjusted EBITDA* |
$ 240.2 |
$ — |
$ — |
$ — |
$ — |
$ 240.2 |
|||||
|
Depreciation and amortization |
(68.8) |
— |
— |
— |
— |
(68.8) |
|||||
|
Curiosity expense and amortization of debt reductions and charges |
(60.6) |
— |
— |
20.5 |
— |
(40.1) |
|||||
|
Inventory-based compensation |
(8.8) |
— |
— |
— |
— |
(8.8) |
|||||
|
Loss on disposal or impairment of property |
(2.3) |
— |
— |
— |
— |
(2.3) |
|||||
|
Loss on early extinguishment of debt |
(1.1) |
1.1 |
— |
— |
— |
— |
|||||
|
Prices related to the strategic alternate options overview |
(22.9) |
— |
— |
22.9 |
— |
— |
|||||
|
Change in honest market worth of fairness securities |
(3.2) |
— |
— |
— |
3.2 |
— |
|||||
|
Revenue from persevering with operations earlier than earnings tax expense |
72.5 |
1.1 |
— |
43.4 |
3.2 |
120.2 |
|||||
|
Provision for earnings tax expense |
(23.8) |
(0.3) |
5.5 |
(11.3) |
(0.9) |
(30.8) |
|||||
|
Revenue from persevering with operations attributable to Embody Well being |
$ 48.7 |
$ 0.8 |
$ 5.5 |
$ 32.1 |
$ 2.3 |
$ 89.4 |
|||||
|
Diluted earnings per share from persevering with operations** |
$ 0.49 |
$ 0.01 |
$ 0.05 |
$ 0.32 |
$ 0.02 |
$ 0.89 |
|||||
|
Diluted shares utilized in calculation |
100.3 |
||||||||||
|
* See reconciliation of web earnings to Adjusted EBITDA |
|||||||||||
|
** Adjusted EPS might not sum throughout resulting from rounding. |
|||||||||||
|
Embody Well being Company and Subsidiaries |
|||||||||||||
|
For the Three Months Ended June 30, 2021 |
|||||||||||||
|
Changes |
|||||||||||||
|
As Reported |
Loss on Early Exting. of Debt |
Revenue Tax Changes |
Prices Related to the Strategic Options Assessment |
Prices Related to the Frontier Acquisition |
Change in Truthful Market Worth of Fairness Securities |
As Adjusted |
|||||||
|
(In Thousands and thousands, Besides Per Share Quantities) |
|||||||||||||
|
Adjusted EBITDA* |
$ 278.9 |
$ — |
$ — |
$ — |
$ — |
$ — |
$ 278.9 |
||||||
|
Depreciation and amortization |
(63.4) |
— |
— |
— |
— |
— |
(63.4) |
||||||
|
Curiosity expense and amortization of debt reductions and charges |
(41.8) |
— |
— |
— |
— |
— |
(41.8) |
||||||
|
Inventory-based compensation |
(12.0) |
— |
— |
— |
— |
— |
(12.0) |
||||||
|
Loss on disposal or impairment of property |
(2.9) |
— |
— |
— |
— |
— |
(2.9) |
||||||
|
Loss on early extinguishment of debt |
(1.0) |
1.0 |
— |
— |
— |
— |
— |
||||||
|
Prices related to the strategic alternate options overview |
(4.1) |
— |
— |
4.1 |
— |
— |
|||||||
|
Prices related to the Frontier Acquisition |
(1.3) |
— |
— |
— |
1.3 |
— |
— |
||||||
|
Change in honest market worth of fairness securities |
0.7 |
— |
— |
— |
— |
(0.7) |
— |
||||||
|
Revenue from persevering with operations earlier than earnings tax expense |
153.1 |
1.0 |
— |
4.1 |
1.3 |
(0.7) |
158.8 |
||||||
|
Provision for earnings tax expense |
(39.5) |
(0.3) |
(0.1) |
(1.1) |
(0.3) |
0.2 |
(41.1) |
||||||
|
Revenue from persevering with operations attributable to Embody Well being |
$ 113.6 |
$ 0.7 |
$ (0.1) |
$ 3.0 |
$ 1.0 |
$ (0.5) |
$ 117.7 |
||||||
|
Diluted earnings per share from persevering with operations** |
$ 1.13 |
$ 0.01 |
$ — |
$ 0.03 |
$ 0.01 |
$ — |
$ 1.17 |
||||||
|
Diluted shares utilized in calculation |
100.2 |
||||||||||||
|
* See reconciliation of web earnings to Adjusted EBITDA |
|||||||||||||
|
** Adjusted EPS might not sum throughout resulting from rounding. |
|||||||||||||
|
Embody Well being Company and Subsidiaries |
|||||||||||
|
For the Six Months Ended June 30, 2022 |
|||||||||||
|
Changes |
|||||||||||
|
As Reported |
Loss on Early Extinguishment of Debt |
Revenue Tax Changes |
Prices Related to the Strategic Options Assessment |
Change in Truthful Market Worth of Fairness Securities |
As Adjusted |
||||||
|
(In Thousands and thousands, Besides Per Share Quantities) |
|||||||||||
|
Adjusted EBITDA* |
$ 485.2 |
$ — |
$ — |
$ — |
$ — |
$ 485.2 |
|||||
|
Depreciation and amortization |
(135.0) |
— |
— |
— |
— |
(135.0) |
|||||
|
Curiosity expense and amortization of debt reductions and charges |
(100.2) |
— |
— |
20.5 |
— |
(79.7) |
|||||
|
Inventory-based compensation |
(16.3) |
— |
— |
— |
— |
(16.3) |
|||||
|
Loss on disposal or impairment of property |
(2.9) |
— |
— |
— |
— |
(2.9) |
|||||
|
Loss on early extinguishment of debt |
(1.4) |
1.4 |
— |
— |
— |
— |
|||||
|
Prices related to the strategic alternate options overview |
(32.5) |
— |
— |
32.5 |
— |
— |
|||||
|
Change in honest market worth of fairness securities |
(5.7) |
— |
— |
— |
5.7 |
— |
|||||
|
Revenue from persevering with operations earlier than earnings tax expense |
191.2 |
1.4 |
— |
53.0 |
5.7 |
251.3 |
|||||
|
Provision for earnings tax expense |
(55.0) |
(0.4) |
5.7 |
(13.8) |
(1.5) |
(65.0) |
|||||
|
Revenue from persevering with operations attributable to Embody Well being |
$ 136.2 |
$ 1.0 |
$ 5.7 |
$ 39.2 |
$ 4.2 |
$ 186.3 |
|||||
|
Diluted earnings per share from persevering with operations** |
$ 1.36 |
$ 0.01 |
$ 0.06 |
$ 0.39 |
$ 0.04 |
$ 1.86 |
|||||
|
Diluted shares utilized in calculation |
100.2 |
||||||||||
|
* See reconciliation of web earnings to Adjusted EBITDA |
|||||||||||
|
** Adjusted EPS might not sum throughout resulting from rounding. |
|||||||||||
|
Embody Well being Company and Subsidiaries |
|||||||||||||
|
For the Six Months Ended June 30, 2021 |
|||||||||||||
|
Changes |
|||||||||||||
|
As Reported |
Loss on Early Exting. of Debt |
Revenue Tax Changes |
Prices Related to the Strategic Options Assessment |
Prices Related to the Frontier Acquisition |
Change in Truthful Market Worth of Fairness Securities |
As Adjusted |
|||||||
|
(In Thousands and thousands, Besides Per Share Quantities) |
|||||||||||||
|
Adjusted EBITDA* |
$ 529.7 |
$ — |
$ — |
$ — |
$ — |
$ — |
$ 529.7 |
||||||
|
Depreciation and amortization |
(125.9) |
— |
— |
— |
— |
— |
(125.9) |
||||||
|
Curiosity expense and amortization of debt reductions and charges |
(84.6) |
— |
— |
— |
— |
— |
(84.6) |
||||||
|
Inventory-based compensation |
(14.8) |
— |
— |
— |
— |
— |
(14.8) |
||||||
|
Loss on disposal or impairment of property |
(2.8) |
— |
— |
— |
— |
— |
(2.8) |
||||||
|
Loss on early extinguishment of debt |
(1.0) |
1.0 |
— |
— |
— |
— |
— |
||||||
|
Prices related to the strategic alternate options overview |
(5.0) |
— |
— |
5.0 |
— |
— |
|||||||
|
Prices related to the Frontier Acquisition |
(1.3) |
— |
— |
— |
1.3 |
— |
— |
||||||
|
Change in honest market worth of fairness securities |
0.6 |
— |
— |
— |
— |
(0.6) |
— |
||||||
|
Revenue from persevering with operations earlier than earnings tax expense |
294.9 |
1.0 |
— |
5.0 |
1.3 |
(0.6) |
301.6 |
||||||
|
Provision for earnings tax expense |
(74.0) |
(0.3) |
(3.4) |
(1.3) |
(0.3) |
0.2 |
(79.1) |
||||||
|
Revenue from persevering with operations attributable to Embody Well being |
$ 220.9 |
$ 0.7 |
$ (3.4) |
$ 3.7 |
$ 1.0 |
$ (0.4) |
$ 222.5 |
||||||
|
Diluted earnings per share from persevering with operations** |
$ 2.20 |
$ 0.01 |
$ (0.03) |
$ 0.04 |
$ 0.01 |
$ — |
$ 2.22 |
||||||
|
Diluted shares utilized in calculation |
100.2 |
||||||||||||
|
* See reconciliation of web earnings to Adjusted EBITDA |
|||||||||||||
|
** Adjusted EPS might not sum throughout resulting from rounding. |
|||||||||||||
|
Embody Well being Company and Subsidiaries |
|||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(In Thousands and thousands) |
|||||||
|
Web earnings |
$ 71.3 |
$ 142.0 |
$ 181.4 |
$ 274.8 |
|||
|
Loss from discontinued operations, web of tax, attributable to Embody Well being |
— |
0.3 |
— |
0.3 |
|||
|
Web earnings attributable to noncontrolling pursuits |
(22.6) |
(28.7) |
(45.2) |
(54.2) |
|||
|
Provision for earnings tax expense |
23.8 |
39.5 |
55.0 |
74.0 |
|||
|
Curiosity expense and amortization of debt reductions and charges |
60.6 |
41.8 |
100.2 |
84.6 |
|||
|
Depreciation and amortization |
68.8 |
63.4 |
135.0 |
125.9 |
|||
|
Loss on early extinguishment of debt |
1.1 |
1.0 |
1.4 |
1.0 |
|||
|
Loss on disposal or impairment of property |
2.3 |
2.9 |
2.9 |
2.8 |
|||
|
Inventory-based compensation |
8.8 |
12.0 |
16.3 |
14.8 |
|||
|
Prices related to the strategic alternate options overview |
22.9 |
4.1 |
32.5 |
5.0 |
|||
|
Prices related to the Frontier acquisition |
— |
1.3 |
— |
1.3 |
|||
|
Change in honest market worth of fairness securities |
3.2 |
(0.7) |
5.7 |
(0.6) |
|||
|
Adjusted EBITDA |
$ 240.2 |
$ 278.9 |
$ 485.2 |
$ 529.7 |
|||
|
Reconciliation of Section Adjusted EBITDA to Revenue from Persevering with Operations |
|||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(In Thousands and thousands) |
|||||||
|
Whole section Adjusted EBITDA |
$ 268.8 |
$ 315.7 |
$ 545.1 |
$ 601.4 |
|||
|
Common and administrative bills |
(60.3) |
(54.2) |
(108.7) |
(92.8) |
|||
|
Depreciation and amortization |
(68.8) |
(63.4) |
(135.0) |
(125.9) |
|||
|
Loss on disposal or impairment of property |
(2.3) |
(2.9) |
(2.9) |
(2.8) |
|||
|
Loss on early extinguishment of debt |
(1.1) |
(1.0) |
(1.4) |
(1.0) |
|||
|
Curiosity expense and amortization of debt reductions and charges |
(60.6) |
(41.8) |
(100.2) |
(84.6) |
|||
|
Web earnings attributable to noncontrolling pursuits |
22.6 |
28.7 |
45.2 |
54.2 |
|||
|
Change in honest market worth of fairness securities |
(3.2) |
0.7 |
(5.7) |
0.6 |
|||
|
Revenue from persevering with operations earlier than earnings tax expense |
$ 95.1 |
$ 181.8 |
$ 236.4 |
$ 349.1 |
|||
|
Embody Well being Company and Subsidiaries |
|||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(In Thousands and thousands) |
|||||||
|
Web money offered by working actions |
$ 244.6 |
$ 255.9 |
$ 463.5 |
$ 414.4 |
|||
|
Curiosity expense and amortization of debt reductions and charges |
60.6 |
41.8 |
100.2 |
84.6 |
|||
|
Fairness in web earnings of nonconsolidated associates |
1.0 |
1.0 |
1.9 |
2.0 |
|||
|
Web earnings attributable to noncontrolling pursuits in persevering with operations |
(22.6) |
(28.7) |
(45.2) |
(54.2) |
|||
|
Amortization of debt-related gadgets |
(2.5) |
(2.0) |
(4.8) |
(4.0) |
|||
|
Distributions from nonconsolidated associates |
(1.9) |
(0.8) |
(2.9) |
(1.8) |
|||
|
Present portion of earnings tax expense |
33.7 |
42.0 |
62.9 |
67.8 |
|||
|
Change in property and liabilities |
(91.4) |
(39.3) |
(116.7) |
11.0 |
|||
|
Money (offered by) utilized in working actions of discontinued operations |
(0.1) |
0.6 |
— |
0.6 |
|||
|
Prices related to the strategic alternate options overview |
22.9 |
4.1 |
32.5 |
5.0 |
|||
|
Prices related to the Frontier acquisition |
— |
1.3 |
— |
1.3 |
|||
|
Change in honest market worth of fairness securities |
3.2 |
(0.7) |
5.7 |
(0.6) |
|||
|
Different |
(7.3) |
3.7 |
(11.9) |
3.6 |
|||
|
Adjusted EBITDA |
$ 240.2 |
$ 278.9 |
$ 485.2 |
$ 529.7 |
|||
|
Embody Well being Company and Subsidiaries |
|||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(In Thousands and thousands) |
|||||||
|
Web money offered by working actions |
$ 244.6 |
$ 255.9 |
$ 463.5 |
$ 414.4 |
|||
|
Affect of discontinued operations |
(0.1) |
0.6 |
— |
0.6 |
|||
|
Web money offered by working actions of constant operations |
244.5 |
256.5 |
463.5 |
415.0 |
|||
|
Capital expenditures for upkeep |
(39.5) |
(30.5) |
(74.0) |
(53.8) |
|||
|
Distributions paid to noncontrolling pursuits of consolidated associates |
(25.3) |
(24.9) |
(46.6) |
(52.7) |
|||
|
Gadgets not indicative of ongoing working efficiency: |
|||||||
|
Transaction prices and associated assumed liabilities |
26.0 |
4.5 |
28.7 |
4.5 |
|||
|
Adjusted free money move |
$ 205.7 |
$ 205.6 |
$ 371.6 |
$ 313.0 |
|||
For the three months ended June 30, 2022, web money utilized in investing actions was $123.2 million and resulted primarily from capital expenditures. Web money utilized in financing actions in the course of the three months ended June 30, 2022 was $19.3 million and resulted primarily from money dividends paid on frequent inventory and distributions to noncontrolling pursuits of consolidated associates.
For the three months ended June 30, 2021, web money utilized in investing actions was $226.0 million and primarily resulted from capital expenditures and the acquisition of property from Frontier Residence Well being and Hospice. Web money utilized in financing actions in the course of the three months ended June 30, 2021 was $186.4 million and primarily resulted from web debt funds, money dividends paid on frequent inventory, and distributions to noncontrolling pursuits of consolidated associates.
For the six months ended June 30, 2022, web money utilized in investing actions was $246.3 million and primarily resulted from capital expenditures. Web money utilized in financing actions in the course of the six months ended June 30, 2022 was $80.2 million and primarily resulted from money dividends paid on frequent inventory and distributions to noncontrolling pursuits of consolidated associates.
For the six months ended June 30, 2021, web money utilized in investing actions was $321.6 million and primarily resulted from capital expenditures and the acquisition of property from Frontier Residence Well being and Hospice. Web money utilized in financing actions in the course of the six months ended June 30, 2021 was $263.9 million and primarily resulted from web debt funds, money dividends paid on frequent inventory and distributions to noncontrolling pursuits of consolidated associates.
Embody Well being Company and Subsidiaries
Ahead-Wanting Statements
Statements contained on this press launch and the supplemental info which aren’t historic details, resembling these referring to the spin off of the house well being and hospice enterprise and its impression on the enterprise mannequin, outlook and steerage, the character of the COVID-19 pandemic and its impression on Embody Well being’s enterprise and monetary assumptions, legislative and regulatory developments, monetary steerage, improvement tasks, steadiness sheet and money move plans, are forward-looking statements inside the which means of the Personal Securities Litigation Reform Act of 1995. As well as, Embody Well being, by its senior administration, might on occasion make forward-looking public statements in regards to the issues described herein. All such estimates, projections, and forward-looking info communicate solely as of the date hereof, and Embody Well being undertakes no responsibility to publicly replace or revise such forward-looking info, whether or not because of new info, future occasions, or in any other case. Such forward-looking statements are essentially estimates based mostly upon present info, contain quite a few dangers and uncertainties, and relate to, amongst different issues, future occasions, Embody Well being’s plan to repurchase its debt or fairness securities, dividend methods, efficient earnings tax charges, its enterprise technique, its monetary plans, its future monetary efficiency, its projected enterprise outcomes or mannequin, its potential to return worth to shareholders, its projected capital expenditures, its leverage ratio, its acquisition alternatives, and the impression of future laws or regulation. Precise occasions or outcomes might differ materially from these anticipated in these forward-looking statements because of quite a lot of components. Whereas it’s unimaginable to determine all such components, components which may trigger precise occasions or outcomes to vary materially from these estimated by Embody Well being embrace, however are usually not restricted to, the continued unfold of COVID-19, together with the velocity, depth, geographic attain and length of the unfold, which may lower our affected person volumes and revenues and result in staffing and provide shortages and related value will increase; actions to be taken by the Firm in response to the pandemic; the authorized, regulatory and administrative developments that happen on the federal, state and native ranges; Embody Well being’s infectious illness prevention and management efforts; the demand for Embody Well being’s providers, together with based mostly on any downturns within the financial system, shopper confidence, or the capital markets and unemployment amongst relations; the worth of Embody Well being’s frequent inventory because it impacts Embody Well being’s willingness and talent to repurchase shares and the monetary and accounting results of any repurchases; any hostile final result of assorted lawsuits, claims, and authorized or regulatory proceedings involving Embody Well being, together with any issues associated to but undiscovered points, if any, in acquired operations; Embody Well being’s potential to draw and retain key administration personnel; any hostile results on Embody Well being’s inventory worth ensuing from the combination of acquired operations; potential disruptions, breaches, or different incidents affecting the right operation, availability, or safety of Embody Well being’s or its distributors’ info methods, together with unauthorized entry to or theft of affected person, enterprise affiliate, or different delicate info or incapability to supply affected person care due to system unavailability in addition to unexpected points, if any, associated to integration of acquired methods; the flexibility to efficiently combine acquired operations, together with realization of anticipated tax advantages, revenues, and price financial savings, minimizing the unfavourable impression on margins arising from the adjustments in staffing and different working practices, and avoidance of unexpected publicity to liabilities; Embody Well being’s potential to efficiently full and combine de novo developments, acquisitions, investments, and joint ventures in line with its development technique; will increase in Medicare audit exercise, together with elevated use of sampling and extrapolation, leading to extra unpaid reimbursement claims and a rise within the backlog of appealed claims denials; adjustments, delays in (together with in reference to decision of Medicare cost critiques or appeals), or suspension of reimbursement for Embody Well being’s providers by governmental or non-public payors; adjustments within the regulation of the healthcare trade at both or each of the federal and state ranges, together with as a part of nationwide healthcare reform and deficit discount and Embody Well being’s potential to adapt operations to these adjustments; aggressive pressures within the healthcare trade and Embody Well being’s response thereto; Embody Well being’s potential to acquire and retain favorable preparations with third-party payors; Embody Well being’s potential to manage prices, notably labor and worker profit prices, together with group medical bills; hostile results ensuing from protection determinations made by Medicare Administrative Contractors concerning its Medicare reimbursement claims and lengthening delays in Embody Well being’s potential to recuperate improperly denied claims by the executive appeals course of on a well timed foundation; Embody Well being’s potential to adapt to adjustments within the healthcare supply system, together with value-based buying and involvement in coordinated care initiatives or applications that will come up with its referral sources; Embody Well being’s potential to draw and retain nurses, therapists, and different healthcare professionals in a extremely aggressive surroundings with usually extreme staffing shortages, which can be worsened by the pandemic, and the impression on Embody Well being’s labor bills from potential union exercise, staffing shortages, and aggressive compensation practices; normal situations within the financial system and capital markets, together with any instability or uncertainty associated to armed battle or an act of terrorism, governmental deadlock over approval of the US federal finances, a rise within the debt ceiling, or a world sovereign debt disaster; the rise within the prices of defending and insuring towards alleged skilled legal responsibility claims, together with claims related to affected person and worker exposures to COVID-19, and Embody Well being’s potential to foretell the estimated prices associated to such claims; and different components which can be recognized on occasion in Embody Well being’s SEC filings and different public bulletins, together with Embody Well being’s Type 10‑Ok for the 12 months ended December 31, 2021 and Type 10-Q for the quarters ended March 31, 2022 and June 30, 2022, when filed.
Media Contact
Casey Winger, 205 447-6410
[email protected]
Investor Relations Contact
Mark Miller, 205 970-5860
[email protected]
SOURCE Embody Well being Corp.
